05-03 - R TOWN OF PROSPER RESOLUTION NO. 05-03
A RESOLUTION BY THE TOWN OF PROSPER, TEXAS SUSPENDING THE PROPOSAL BY
ATMOS ENERGY CORP. TO IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS FOR GAS
UTILITY INVESTMENT IN 2003; AUTHORIZING PARTICIPATION WITH OTHER CITIES
SERVED BY ATMOS ENERGY CORP., MID-TEX DIVISION, IN A REVIEW AND INQUIRY INTO
THE BASIS AND REASONABLENESS OF THE PROPOSED RATE ADJUSTMENTS;
AUTHORIZING INTERVENTION IN ADMINISTRATIVE AND COURT PROCEEDINGS
INVOLVING THE PROPOSED GRIP RATE ADJUSTMENTS; DESIGNATING A
REPRESENTATIVE OF THE TOWN TO SERVE ON A STEERING COMMITTEE; REQUIRING
REIMBURSEMENT OF REASONABLE LEGAL AND CONSULTANT EXPENSES
WHEREAS, the Town of Prosper, Texas ("Town") is a gas utility customer of Atmos Energy Corp., Mid-Tex
Division, ("Atmos Mid-Tex" or"the Company") and a regulatory authority with an interest in the rates and charges of
Atmos Mid-Tex; and
WHEREAS, Atmos Mid-Tex made filings with the Town and the Railroad Commission of Texas ("Railroad
Commission") in December, 2004, proposing to implement interim rate adjustments ("GRIP Rate Increases")
pursuant to Texas Utilities Code§ 104.301 on all customers served by Atmos Mid-Tex; and
WHEREAS, Atmos Energy Corporation has reported a twenty percent increase in profits for its fiscal year
ended September 30, 2004, and projects further increases in profits in 2005; and
WHEREAS, in May, 2004, the Railroad Commission entered its Final Order in GUD No. 9400 authorizing a
rate increase that will produce additional annual revenues of$11.5 million for Atmos Mid-Tex; and
WHEREAS, Atmos Mid-Tex has projected that it will experience annual cost savings of at least$40 million
over the costs included in rates approved in GUD No. 9400 and said savings are likely to greatly exceed the annual
revenue requirement associated with any reasonable increases in invested capital that form the basis of the
proposed GRIP rate increases; and
WHEREAS, ratepayers of Atmos Mid-Tex, including the Town and its residents, will be adversely impacted
by the proposed GRIP Rate Increases; and
WHEREAS, the Town and its residents could benefit from coordination with other cities served by Atmos
Mid-Tex ("Cities") in a review of the reasonableness of the proposed GRIP Rate Increases and joint participation in
any proceedings at the Railroad Commission related to the proposed GRIP Rate Increases; and
WHEREAS, the reasonable costs associated with the participation of Cities in this rate proceeding are
reimbursable from Atmos Mid-Tex.
THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF PROSPER, TEXAS,
THAT:
1. The February 15, 2005, effective date of the GRIP Rate Increases proposed by Atmos Mid-Tex is hereby
suspended to permit adequate time to review the proposed increases, analyze all necessary information,
and take appropriate action related to the proposed increases.
2. The Town is authorized to cooperate with other Cities to create and participate in a Steering Committee to
hire and direct legal counsel and consultants, to negotiate with the Company, to make recommendations to
the Town regarding the proposed GRIP Rate Increases, and to direct any administrative proceedings or
litigation associated with the proposed GRIP Rate Increases.
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3. The Town is authorized to intervene in any administrative proceedings or litigation associated with the
proposed GRIP Rate Increases, including GUD No. 9560, the Company's proposed GRIP rate increase for
its pipeline system filed at the Railroad Commission.
4. The Town hereby designates Town Administrator, Douglas Mousel as a representative to a Cities' Steering
Committee that shall direct the efforts of counsel and consultants.
5. Atmos Mid-Tex shall promptly reimburse the Town's reasonable costs associated with the Town's activities
related to the proposed GRIP Rate Increases.
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF PROSPER, TEXAS ON THIS 11th
DAY OF JANUARY,2005.
CHARLES SWAN , ayor
ATTESTED TO:
NAE JENNINGS, n Secretary
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